Microsoft's market capitalization surged to $3.125 trillion, surpassing Apple's $2.916 trillion, making it the first American company to achieve a $3.1 trillion market cap. This milestone was reached as Microsoft's shares soared, closing at $420.55 on Friday. The previous record was held by Apple, which achieved a market cap of $3.09 trillion in July. Microsoft's robust performance is attributed to its substantial profits in the field of Artificial Intelligence (AI), particularly from its collaboration with Open AI.
The partnership with Open AI has proven highly beneficial for both microsoft and Apple. The widespread popularity of Open AI's Chat GPT has generated significant enthusiasm for AI applications, prompting increased investments in microsoft stocks. Microsoft's stock has witnessed an impressive growth of nearly 60% over the last 12 months.
Microsoft CEO satya Nadella, who recently completed his 10th year at the helm, emphasized the company's transition from discussing AI to actively implementing it. He highlighted the tangible benefits derived from gaining new customers through AI initiatives. Nadella's strategic focus on cloud computing and artificial intelligence has steered microsoft in a new direction, contributing to its remarkable success in the tech industry. Since assuming leadership in 2014, Nadella has played a pivotal role in reshaping Microsoft's trajectory and driving innovation in emerging technologies.